When “bankruptcy” is a word that starts getting tossed around in conversation it is more common for an individual to think about filing Chapter 7 because it is the more common type of bankruptcy. It is the more common type of bankruptcy because most of your personal debts will be cancelled. The only concern with filing this type of bankruptcy is the fact that a number of your personal pieces of property may be retained by the court and liquidated in order to try to pay off some of the money that you owe.
How to File for Chapter 7 Bankruptcy
Start by finding a lawyer or law firm that helps with filing Chapter 7 Bankruptcy in Fairfield OH. The unfortunate truth is that filing bankruptcy on your own can be confusing. There have been a number of amendments made to the bankruptcy laws over the years as well. This means that even if you filed bankruptcy five or ten years ago, the process might not be exactly the same.
Before you reach out to a lawyer or law firm that offers assistance with filing Chapter 7 Bankruptcy in Fairfield OH you might consider taking the two-part qualification test to see if you even qualify for Chapter 7. Not qualifying does not mean you cannot file bankruptcy, it just means you have to file Chapter 11 and not Chapter 7.
The first part of the test is examining your ability to repay. Some people prefer to reach out to a law firm such as Dean Snyder Attorney At Law before taking the test to make sure they take the test the right way. First, your income will be examined using a very specific formula. The formula will take your monthly income and subtract all of your monthly expenses. If you have enough money to pay 25 percent of your total debt left over, you will not qualify to file Chapter 7.
Your monthly income will also be compared to what is considered the current average with your state. You cannot make more than the current state average if you want to file Chapter 7 bankruptcy.
